Order 201 3

- 7

- 7

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 8 th day of May , 201 3

Served: July 9 , 201 3

Docket s DOT

- OST

- 2011

- 0076

DOT

- OST

- 200 1

- 10068

Docket s DOT

- OST

- 20 11

- 0076

DOT

- OST

- 2011

- 0179

DOT

- OST

- 2008

- 0105

Docket s DOT

- OST

- 2011

- 0076

DOT

- OST

- 1999

- 6663 Application of

AMERIJET INTERNATIONAL, INC. (Amerijet)

for renewed certificate of public convenience and necessity pursuant to 49 U.S.C. §41102 (U.S.

- Mexico all

- cargo)

Application of

FEDERAL EXPRESS CORPORATION (FedEx Express)

for renewed certificate of public convenience and necessity pursuant to 49 U.S.C. §41102 (U.S.

- Mexico all

- cargo)

Application of

UNITED PARCEL SERVICE CO. (UPS)

for renewed certificate of public convenience and necessity pursuant to 49 U.S.C. §41102 (U.S.

- Mexico all

- cargo)ORDER ISSUING CERTIFICATE S

Decision

By this order we renew certificate authority to the captioned applicants to provide foreign scheduled air transportation of property and mail between various points in the United States and various points in Mexico. 1 We also amend the certificate authorit y of FedEx Express to add new

U.S.

- Mexico city pairs (Memphis

- Queretaro, Mobile

- Queretaro

, and Indianapolis

- Guadalajara) that the carrier had requested in an earlier filed certificate application. 2 The subject carriers have filed and perfected each applic ation as required by 14 CFR 201 and serv ed it as required by 14 CFR 302.203(b). (See Attachment A to this order for a summary description of these applications , the relevant authority the applicants currently hold, and the disposition of their
requests .)

T he public convenience and necessity bases for granting these applications to the extent set forth

in this order are clear, and the applications are not controversial . Therefore

, it is appropriate to use these simplified Subpart B procedures to grant the requests under assigned authority. 3 Each of the applicants receiving authority by this order is fit and a citizen of the United States as defined in 49 U.S.C. §40102(a)(15). 4

The attached certificates are consistent with the U.S.

- Mexico Air Transport Agr eement and authorize the use of rights for which the United States has exchanged valuable operating rights. All of the authority conferred here contributes to the variety of price and service options available to shippers. We therefore find, under assign ed authority, that the public interest warrants granting the certificates, in the form attached and subject to the conditions outlined in

each of those certificates. 5

1 Since we last renewed this authority, we have established a Mexico Procedural Docket (DOT

- OST

- 2011

- 0076), a docket pertaining exclusively to U.S.

- Mexico licensing matters. Consistent with Order 2012

- 1

- 30, we are placing a copy of this order in that docke t.

2 FedEx Express applied in Docket DOT

- OST

- 2011

- 0179 for both exemption and certificate authority to serve the new points. We awarded the exemption authority and deferred on the certificate request. See Notice of Action Taken dated September 30, 2011, in that docket. FedEx Express’ certificate amendment request sought either the specific new points, or “between a point or points in the United States and a point or points in Mexico.” We are awarding the specific point authority, as we had previously do ne by exemption, but not the broad authority. We have previously considered the issue of awarding broad U.S.

- Mexico scheduled all

- cargo authority and are again

decid ing against doing so. See Order 2008

- 7

- 15. We find that the determinations we reached be fore remain applicable. Therefore, we will deny FedEx Express’ alternative request for broad U.S.

- Mexico certificate authority.

3 Under Rule s 33(b) and 212, we may, in our discretion, omit a tentative decision in proceedings under Subpart B and proceed directly to a final decision

. 4 By Order 2007

- 7

- 4 (issued May 7, 2007), Amerijet, FedEx, and UPS were found to be citizens of the United States and fit, willing, and able to provide scheduled foreign air transportation of property and mail as certificate d air

carriers under section 41102 of Title 49 U.S.C.

5 The renewal applications of Amerijet and UPS were not timely filed ( i.e., 180 days before expiration of the subject authority), and the carriers accompanied their renewal applications with requests fo r waivers of the advance filing requirements pursuant to 14 CFR Part 377 . In the circumstances presented, including the absence of opposition to the applications, we will grant Amerijet and UPS waivers of the advance filing requirement.Terms, Conditions, and Limitations

General

Each certificate of public convenience and necessity is subject to the standard terms, conditions,

and limitations we consistentl y impose in the public interest. All of the certificate actions taken by this order pertain to limited

- entry routes. Therefore, consistent with our established polic y in this regard, the certificates issued here are for five years’ duration under 49 U.S.C. §41102 (c). 6
Further, consistent with our policy regarding U.S.

- Mexico authorizations, we will issue the subject U.S.

- Mexico authority on a city

- pair basis, imposin g the standard 90

- day dormancy condition and dormancy notice requirements for U.S.

- Mexico authority set forth in condition 7 of Appendix A of Order 88

- 10

- 2. 7 Also, consistent with our policy for U.S.

- Mexico authority, we will not impose our standard cond ition on authority that is identified as intermittent. 8

Further, the U.S.

- Mexico all

- cargo certificates attached include a standard condition that provides for each of the carriers to (1) combine services on all of their authorized U.S.

- Mexico city

- pair r oute segments, and (2) combine those services with other all

- cargo certificate or exemption authorizations for U.S.

- Mexico city

- pair markets granted by the Department.

With respect to each of the applicants ’ request s for U.S.

- foreign country route integr ation authority, we note that

, by Order 2010

- 12

- 24, the Department renewed each of the applicant’s blanket route integration certificate s . Therefore, we dismiss , as moot, th at portion of each applica nt’s request.

Findings and Conclusions

In view of the foregoing and all the facts of record, we find and conclude that:

1. It is consistent with the public convenience and necessity to issue each applicant a certificate in the form attached;

2. Each applicant is a citizen of the United States and is fit, willing and able to perform properly the foreign air transportation described in the attached certificate and to conform to the provisions of Subtitle VII of Title 49, United States Code (Transportation), and to the Department’s rules, regulations, and requirements;

3. The public interest requires that the exercise of the privileges granted by the attached certificates be subject to the terms, conditions, and limitations contained in and attached to those certificates and to such others required by th e public interest as the Department may prescribe;

6 14 CFR Part 399. 120.

7 Dormancy conditions require carriers to advise the Department as soon as the decision to discontinue service is made, but in no case later than the 91 st day of dormancy. Notices should be filed in the Mexico Procedural Docket (DOT

- OST

- 2011

- 0076), p ursuant to the procedures described in Order 2012

- 1

- 30.

8 See Order 96

- 11

- 24, issued November 7, 1996, for a description of such intermittent all

- cargo service and the Department’s policy for implementing modified dormancy conditions to provide carriers wi th adequate operational flexibility in markets that have been identified as being served on an intermittent basis.4. The issuance of the certificates does not constitute a major regulatory action under the Energy Policy and Conservation Act of 1975, as defined by section 313.4(a)(1) of the Department’s regulations; 9 and

5. The public interest does not require an oral evidentiary hearing or a show

- cause proceeding on any of these applications. There are no material, determinative issues of fact requiring such procedures for their resolution.

In view of the above, and actin g under authority assigned by the Department , we find that the action here is consistent with Department policy. Persons entitled to petition the Department for review of this action under the Department’s Regulations, 14 CFR § 385.30, may file their
pet itions within seven (7) days after the date of service of this Order. This action was effective on the date indicated below, and the filing of a petition for review will not alter such

effectiveness.

ACCORDINGLY,

1. We amend, renew
, and reissue , as approp riate and as stated, in the form attached, certificates of public convenience and necessity to the applicants listed in the caption of this order;

2. The certificates issued to each of the captioned carriers will be effective upon the

service date of this or der;

3. We grant the requests of Amerijet International, Inc. and United Parcel Service Co. for waivers of the 180 day advance filing req uirement under 14 CFR 377.10(c);

4. We deny the application of Federal Express Corporation, in Docket DOT

- OST

- 2011

- 0179, to the extent that it requests broad U.S.

- Mexico all

- cargo certificate authority;

5. We dismiss, as moot, the applications to the extent that the applicants request route integration authority for the subject U.S.

- Mexico all

- cargo services authorized by this order;

6. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this order shall become effective upon the 61st day after its submission for § 41307 review, or upon the date of receipt of advice from the President or his designee under Executive Order 12597 and implementing regulations that he or she does not intend to disapprove the Department’s order under that section, whichever occurs earlier; 10 and

9 Our finding is based on the fact that the grant of each application would not result in a near

- term increase in annual fuel consumption in excess of 10 million gallons.

10 This order was submitted for review under 49 USC Section 41307 on May 8 , 2013. The 61 st day is July 8 , 2013. Since the President or his designee did not disapprove this order before that date, it became effective on July 8

, 2013.7. We will serve this order on Amerijet International , Inc.; Federal Express Corporation; United Parcel Service Co.; the Ambassador of Mexico in Washington, D.C .; the U.S. Department of State (Office of Aviation Negotiations), and the Federal Aviation

Administration.

By:

PAUL L. GRETCH

Director

Office of International AviationAttachment A Page 1 of 2

SUMMARY OF U.S.

- MEXICO CERTIFICATE APPLICATIONS

– FOR

INFORMATION ONLY

CARRIER APPLICATION

DATE DOCKET APPLICATION REQUESTS DISPOSTION OF REQUESTS

IN THIS

ORDER Amerijet March 4, 2013 DOT

- OST

- 2001

- 10068 Renewal of the U.S.

- Mexico authority for Route 570, last issued by

Order 2008

- 7

- 15.

The carrier also requested

renewal of its route integration authority.

Waiver of advance filing requirements required by

14 CFR Part 377. Grants carrier’s
request to renew
Route 570.

Dismisses, as moot, carrier’s

U.S.

- foreign route integration
request.

Grants waiver.

FedEx Express January 10, 2013 DOT

- OST

- 2011

- 0105 Renewal of the U.S.

- Mexico authority for Route 568, last issued by

Order 2008

- 7

- 15.

The carrier also requested route integration authority. Grants carrier’s
request to renew
Route 568.

Dismisses, as moot, carrier’s

U.S.

- foreign route integra tion
requestAttachment A Page 2 of 2

FedEx Express September 19,

2011 DOT

- OST

- 2011

- 0179 Amendment of certificate

for Route 568 to add the authority for all

- cargo service between (1) Memphis and Mobile, on the one hand, and Queretaro, on the other hand; and (2) Indianapolis

and Guadalajara. FedEx Express currently holds authority by exemption.

See Notice of Action Taken dated 9/30/11, in

Docket DOT

- OST

- 2011

- 0179.

In the alternative, FedEx Express requests broad

U.S.

- Mexico certificate authority. Grants request
for amendment.

Denies

alternative
request. See footnote 2,

above.

UPS February 26, 2013 DOT

- OST

- 1999

- 6663 Renewal of the U.S.

- Mexico authority for Route 569, last issued by

Order 2008

- 7

- 15.

The carrier also requested

renewal of its route integration authority.

Waiver of advance filing requirements required by

14 CFR Part 377. Grants carrier’s
request to renew
Route 569.

Dismisses, as moot, carrier’s

U.S.

- foreign route integration
request.

Grants waiver.

# Experimental

Certificate of Public Convenience and Necessity

for

ROUTE 570 (as reissued)

This Certifies That



# AMERIJET INTERNATIONAL, INC.

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitat ions, to engage in foreign air transportation of property and mail.

This certificate is not transferable without the approval of the Department of the Transportation.

By Direction of the Secretary

Issued by Order 201 3

- 7

- 7 Paul L. Gretch

On May 8 , 201 3 Director, Office of

Effective on July 8 , 201 3 International Aviation* As renewed by

Order 201 3

- 7

- 7

Route 570 Page 1 of 3

Terms, Conditions, and Limitations

Amerijet International, Inc. for Route 570

is authorized to engage in scheduled foreign air transportation of property and mail over the following U.S.

- Mexico city

- pair route segments:

Ft. Lauderdale , Florida

- Cancun Ft. Lauderdale, Florida

- Guadalajara Ft. Lauderdale, Florida

- Merida Ft. Lauderdale, Florida

- Mexico City Miami, Florida

- Cancun Miami, Florida

- Guadalajara Miami, Florida

- Merida Miami, Florida

- Mexico City

This authority is subject to the following conditions:

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Transportation for the services authorized by this certificate,

and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(2) The holder is not authorized to carry passengers (other than cargo attendants accompanying freight shipments).

(3) The holder shall at all t imes conduct its operations in accordance with all treaties and agreements between the United States and other countries, and the exercise of the privileges granted by this certificate is subject to compliance with such treaties and agreements and with

any orders of the Department of Transportation issued under them. To the extent that the holder has authority to serve more than one country or points in more than one country on the same route segment, that authority does not confer upon the holder any addi tional rights (including

fifth

- freedom intermediate and/or beyond rights) in limited

- entry markets unless the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights and has notified the foreign country(ies) involved that any such selected carrier(s) has the required authority. In such cases, the fact that the carrier may hold authority to serve the countries (points) at issue on the same segment will not be considered a s providing any preference to the holder in a carrier selection proceeding.

( 4 ) The exercise of the authority granted here is subject to the holder’s first obtaining from the appropriate foreign governments such operating rights as may be necessary.Or der 201 3

- 7

- 7

Route 570 Page 2 of 3

( 5 ) The holder’s authority is effective only to the extent that such operations comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all app licable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (incl uding charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such air port(s) to be served.

( 6 ) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C. 40102(a)(15).

( 7 ) The holder shall maintain in effect liability insurance coverage as required under 14 CFR

Part 205. Failure to maintain such insurance coverage will render a certificate ineffective, and this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulations shall be sufficient grounds to revoke this certificate.

( 8 ) The h older acknowledges that this certificate is granted to determine if the holder’s projected services, efficiencies, methods, rates, fares, charges, and other projected results will, in fact, materialize and remain for a sustained period of time, and to dete rmine whether the holder will provide the innovative and low

- priced air transportation it proposed in its application for this authority.

( 9 )(a) The holder may combine services on all city

- pair route segments of this certificate and

combine services on this certificate with U.S.

- Mexico all

- cargo services authorized by other Department of Transportation certificates or exemptions, subject to the con ditions below.

( 9 )(b) The provisions in paragraph (9 )( a), above, shall not authorize services which would constitute multiple designations on city

- pair route segments where such multiple designations are not agreed to by the United States and Mexico.

( 10 ) The holder shall file a notice with the Department if it discontinues services on a city

- pair route segment for 90 days or longer. This notice shall be given as soon as the decision to discontinue service (other than seasonal/intermittent) is made, bu t in no case later than the 91 st
day of dormancy. Notices shall be filed in the Mexico Procedural Docket (DOT

- OST

- 2011

- 0076), pursuant to the procedures described in Order 2012

- 1

- 30 and identify the dormant city

pair route segment, and the date the market became (or will become) dormant.

(1 1 ) Should the holder propose any substantial changes in its o wnership, management, or operations (as that term is defined in 14 CFR 204 of the Department’s regulations), it must comply with the requirements of 14 CFR 204.5.Order 201 3

- 7

- 7

Route 570 Page 3 of 3

(1 2 ) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its authority under this certificate shall be suspended under the terms of 14 CFR 204.7 and the holder may n either recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.

This ce rtificate shall become effective July 8, 2013; provided

, however , that prior to the date on which the certificate would otherwise become effective, the Department, either on its own initiative or upon the timely filing of a petition for reconsideration of the order issuing this certificate, may by order or orders extend such effective date from time to time.

The authority to serve each city

- pair route segment in this certificate shall continue in effect until July 8, 2018 ; notwithstanding the above

, howe ver , the authority to serve any city

- pair route segment shall expire automatically and revert to the Department (a) the 90 th day after the holder discontinues service on that segment, or (b) the holder notifies the Department (as provided in

this certifica te) that the segment is dormant, whichever occurs earlier; unless the Department earlier suspends, modifies, or deletes the authority.

# Experimental

Certificate of Public Convenience and Necessity

for

ROUTE 568 (as reissued)

This Certifies That



# FEDERAL EXPRESS CORPORATION

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in foreign air transportation of property and mai l.

This certificate is not transferable without the approval of the Department of the Transportation.

By Direction of the Secretary

Issued by Order 201 3

- 7

- 7 Paul L. Gretch

On May 8 , 2013 Director, Office of

Effective on July 8 , 2013 International Aviation* As renewed and amended by

Order 201 3

- 7

- 7

Route 568 Page 1 of 3

Terms, Conditions, and Limitations

Federal Express Corporation for Route 5 68

is authorized to engage in scheduled foreign air transportation of property and mail over the following U.S.

- Mexico city

- pair route segments:

Lafayette, Louisiana

- Guadalajara Harlingen, Texas

- Guadalajara Harlingen, Texas

- Monterrey Harlingen, Texas

- Tolu ca Indianapolis, Indiana

- Guadalajara Memphis, Tennessee

- Guadalajara Memphis, Tennessee

- Monterrey Memphis, Tennessee

- Queretaro Memphis, Tennessee

- Toluca Mobile, Alabama

- Queretaro Oakland, California

- Guadalajara Oakland, California

- Monterrey

This authority is subject to the following conditions:

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Transportation for the services authorized by this certificate,

and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(2) The holder is not authorized to carry passengers (other than cargo attendants accompanying freight shipments).

(3) The holde r shall at all times conduct its operations in accordance with all treaties and agreements between the United States and other countries, and the exercise of the privileges granted by this certificate is subject to compliance with such treaties and agreeme nts and with any orders of the Department of Transportation issued under them. To the extent that the holder has authority to serve more than one country or points in more than one country on the same route segment, that authority does not confer upon the holder any additional rights (including

fifth

- freedom intermediate and/or beyond rights) in limited

- entry markets unless the Department has completed any necessary carrier selection procedures to determine which carrier(s) should be

authorized to exercise such rights and has notified the foreign country(ies) involved that any such selected carrier(s) has the required authority. In such cases, the fact that the carrier may hold authority to serve the countries (points) at issue on the same segment will not be considered as providing any preference to the holder in a carrier selection proceeding.Order 201 3

- 7

- 7

Route 568 Page 2 of 3

( 4 ) The exercise of the authority granted here is subject to the holder’s first obtaining from the appropriate foreign governm ents such operating rights as may be necessary.

( 5 ) The holder’s authority is effective only to the extent that such operations comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, an d with all applicable U.S. Government requirements concerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served.

( 6 ) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C. 40102(a)(15).

( 7 ) The holder shall maintain in effect liability insurance coverage as required under 14 CFR

Part 20 5. Failure to maintain such insurance coverage will render a certificate ineffective, and this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulations shall be sufficient grounds to revoke this certifica te.

( 8 ) The holder acknowledges that this certificate is granted to determine if the holder’s projected services, efficiencies, methods, rates, fares, charges, and other projected results will, in fact, materialize and remain for a sustained period of time, and to determine whether the holder will provide the innovative and low

- priced air transportation it proposed in its application for this authority.

( 9 )(a) The holder may combine services on all city

- pair route segments of this certificate and

combine services on this certificate with U.S.

- Mexico all

- cargo services authorized by other Department of Transportation certificates or exemptions, subject to the conditions below.

( 9 )(b) The provisions in paragraph ( 9 )(a), above, shall not authorize services which wo uld constitute multiple designations on city

- pair route segments where such multiple designations are not agreed to by the United States and Mexico.

( 10 ) The holder shall file a notice with the Department if it discontinues services on a city

- pair

route segment for 90 days or longer. This notice shall be given as soon as the decision to discontinue service (other than seasonal/intermittent) is made, but in no case later than the 91 st
day of dormancy. Notices shall be filed in the Mexico Procedural Docke t (DOT

- OST

- 2011

- 0076), pursuant to the procedures described in Order 2012

- 1

- 30 and identify the dormant city

pair route segment, and the date the market became (or will become) dormant.

(1 1 ) Should the holder propose any substantial changes in its o wnership, management, or operations (as that term is defined in 14 CFR 204 of the Department’s regulations), it must comply with the requirements of 14 CFR 204.5.Order 201 3

- 7

- 7

Route 568 Page 3 of 3

(1 2 ) In the event the holder ceases all operations f or which it was found “fit, willing, and able,” its authority under this certificate shall be suspended under the terms of 14 CFR 204.7 and the holder may neither recommence nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.

This certificate shall become effective July 8, 2013; provided

, however , that prior to the date on

which the certificate would otherwise become effective, the Department, either on its own initiative or upon the timely filing of a petition for reconsideration of the order issuing this certificate, may by order or orders extend such effective date from time to time.

The authority to serve each city

- pair route segment in this certificate shall continue in effect until July 8 , 201 8 ; notwithstanding the above

, however , the authority to serve any city

- pair route segment shall expire automatically and revert to t he Department (a) the 90 th day after the holder discontinues service on that segment, or (b) the holder notifies the Department (as provided in this certificate) that the segment is dormant, whichever occurs earlier; unless the Department earlier suspends, modifies, or deletes the authority.

# Experimental

Certificate of Public Convenience and Necessity

for

ROUTE 569 (as reissued)

This Certifies That



# UNITED PARCEL SERVICE CO

.

is authorized, subject to the provisions of Subtitle VII of Title 49 of United States Code, the orders, rules, and regulations issued thereunder, and the attached Terms, Conditions, and Limitations, to engage in foreign air transportation of property and mai l.

This certificate is not transferable without the approval of the Department of the Transportation.

By Direction of the Secretary

Issued by Order 201 3

- 7

- 7 Paul L. Gretch

On May 8 , 2013 Director, Office of

Effective on July 8 , 2013 International Aviation* As renewed by

Order 201 3

- 7

- 7

Route 569 Page 1 of 3

Terms, Conditions, and Limitations

United Parcel Service Co

. for Route 5 69

is authorized to engage in scheduled foreign air transportation of property and mail over the following U.S.

- Mexico city

- pair route segments:

Austin, Texas

- Monterrey Houston, Texas

- Mexico City Louisville, Kentucky

- Guadalajara Louisville, Kentucky

- Mexic o City Louisville, Kentucky

- Monterrey San Antonio, Texas

- Guadalajara San Antonio, Texas

- Monterrey

This authority is subject to the following conditions:

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed by the Department of Transportation for the services authorized by this certificate, and with such other reasonable terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(2) The holder is not authorized to carry passengers (other than cargo attendants accompanying freight shipments).

(3) The holder shall at all times conduct its operations in accordance with all treaties and agreements between the United States and other countri es, and the exercise of the privileges granted by this certificate is subject to compliance with such treaties and agreements and with any orders of the Department of Transportation issued under them. To the extent that the holder has authority to serve m ore than one country or points in more than one country on the same route segment, that authority does not confer upon the holder any additional rights (including fifth

- freedom intermediate and/or beyond rights)

in limited

- entry markets unless the Departme nt has completed any necessary carrier selection procedures to determine which carrier(s) should be authorized to exercise such rights and has notified the foreign country(ies) involved that any such selected carrier(s) has the required authority. In such cases, the fact that the carrier may hold authority to serve the countries (points) at issue on the same segment will not be considered as providing any preference to the holder in a carrier selection proceeding.

( 4 ) The exercise of the authority granted here is subject to the holder’s first obtaining from the appropriate foreign governments such operating rights as may be necessary.Order 201 3

- 7

- 7

Route 569 Page 2 of 3

( 5 ) The holder’s authority is effective only to the extent that such operations comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security Administration, and with all applicable U.S. Government requirements con cerning security, including, but not limited to, 49 CFR Part 1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service (including charter flights)

to or from a fore ign airport, contact its Principal Security Inspector (PSI) to advise the PSI of its plans and to find out whether the Transportation Security Administration has determined that security is adequate to allow such airport(s) to be served.

( 6 ) The holder shall at all times remain a “Citizen of the United States,” as required by 49 U.S.C. 40102(a)(15).

( 7 ) The holder shall maintain in effect liability insurance coverage as required under 14 CFR Part 205. Failure to maintain such insurance coverage will re nder a certificate ineffective, and this or other failure to comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulations shall be sufficient grounds to revoke this

certificate.

( 8 ) The holder acknowledges that this certificate is granted to determine if the holder’s projected services, efficiencies, methods, rates, fares, charges, and other projected results will, in fact, materialize and remain for a sustained period of time, and to determine whether the holder will provide the innovative and low

- priced air transportation it proposed in its application for this authority.

( 9 )(a) The holder may combine services on all city

- pair route segments of this certificate

and combine services on this certificate with U.S.

- Mexico all

- carg o services authorized by other Department of Transportation certificates or exemptions, subject to the

conditions below.

( 9 )(b) The provisions in paragraph ( 9 )(a), above, shall not authorize services which would constitute multiple designations on city

- p air route segments where such multiple designations are not agreed to by the United States and Mexico.

( 10 ) The holder shall file a notice with the Department if it discontinues services on a city

- pair route segment for 90 days or longer. This notice sh all be given as soon as the decision to discontinue service (other than seasonal/intermittent) is made, but in no case

later than the 91 st day of dormancy. Notices shall be filed in the Mexico Procedural Docket (DOT

- OST

- 2011

- 0076), pursuant to the procedu res described in Order 2012

- 1

- 30 and identify the dormant city

- pair route segment, and the date the market became (or will become) dormant.

(1 1 ) Should the holder propose any substantial changes in its o wnership, management, or operations (as that term is defined in 14 CFR 204 of the Department’s regulations), it must comply with the requirements of 14 CFR 204.5.Order 201 3

- 7

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Route 5 69 Page 3 of 3

(1 2 ) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its authority under this certificate shall be suspended under the terms of 14 CFR 204.7 and the holder may neither recommence nor advertise such operations unles s its fitness to do so has been redetermined by the Department. Moreover, if the holder does not resume operations within one year of its cessation, its authority shall be revoked for dormancy.

This certificate shall become effective July 8, 2013; provid ed

, however , that prior to the date on which the certificate would otherwise become effective, the Department, either on its own initiative or upon the timely filing of a petition for reconsideration of the order issuing this certificate, may by order or o rders extend such effective date from time to

time.

The authority to serve each city

- pair route segment in this certificate shall continue in

effect until July 8 , 2018 ; notwithstanding the above

, however , the authority to serve any city

- pair route segme nt shall expire automatically and revert to the Department (a) the

90 th day after the holder discontinues service on that segment, or (b) the holder notifies the Department (as provided in this certificate) that the segment is dormant, whichever

occurs ear lier; unless the Department earlier suspends, modifies, or deletes the authority.